Solvang and BlackRock’s GIP form liquefied gas shipping firm

Norwegian gas shipowner Solvang has teamed up with BlackRock’s Global Infrastructure Partners (GIP) to form a new joint venture focused on liquefied gas shipping. Named Solvang Gas Carriers, the 50:50 partnership will initially manage Solvang’s existing fleet of 13 Very Large Gas Carriers (VLGCs) designed for transporting liquefied petroleum gas (LPG) and ammonia. The venture aims to expand into the shipping of LPG, ammonia, ethane, and carbon dioxide (CO2) over the coming years.

Strategic Vision for Growth

Solvang anticipates a surge in demand for liquefied gas shipping in the next decade, driven by a growing reliance on LPG, ammonia, and ethane among customers. The company also expects significant growth in CO2 shipping as the global carbon capture and storage industry advances. Edvin Endresen, CEO of Solvang, expressed confidence in the venture’s potential, stating, “With BlackRock’s GIP on board, we are positioned to pursue large-scale, long-term opportunities.” He emphasized that this partnership enhances Solvang’s capability to deliver safe, reliable, and efficient liquefied gas shipping solutions tailored to an evolving global market.

Cargo ship captures CO2 from its own exhausts and stores it on-deck

Mark Florian, a partner at GIP, highlighted the strategic importance of this investment, noting, “This was a unique opportunity to invest in a company at the forefront of an industry poised to see significant growth over the next few years, with a business model underpinned by long-term contracts.” The collaboration is seen as a significant step towards addressing the increasing demand for sustainable shipping solutions.

Financial Advisory and Future Prospects

Fearnley Securities served as the sole financial advisor to Solvang throughout the transaction. This partnership is expected to unlock new growth avenues and enhance operational efficiencies in the liquefied gas shipping sector. As the industry evolves, the emphasis on environmentally friendly practices and carbon management solutions will likely shape the future of shipping logistics. Solvang Gas Carriers is poised to play a pivotal role in this transition, capitalizing on the growing market for liquefied gas shipping in the years ahead.